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Exclusive Luxury Shopping Experience
Introduction to “Virtual Retail”
© 2016 ELSE Corp S.r.l. 1
© 2016 ELSE Corp S.r.l.
Index
2
• Market Scenario
• Customer Scenario
• Luxury 3.0: Tailoring + Technology + Speed
• An Opportunity for a New Retail Model
Virtual retail will fade
the barrier between
the digital and
physical world, using
Technology as an
experience enhancer
for products and
services.
© 2016 ELSE Corp S.r.l.
The Impact of Virtual Retail
3
www.else-corp.com
GENERAL SCENARIO: MARKET
© 2016 ELSE Corp S.r.l. 4
Now
25% are
willing to pay
a premium
price (+20%)
(Deloitte, 2015)
45% spend
money on
personalization
(Forrester, 2015)
45% are
comfortable
waiting longer to
get a personalized
product
(Deloitte, 2015)
“By 2020, 15% of the clothing Americans buy will be
customised. That is $35 Bn worth in sales in apparel alone.”
Merjin Helle
VP SAP America
The Future
“Hyper-personalisation has started to grow in 2015 and
will become a more important part of the customer
experience over the next couple of years”
Craig Cannon
IBM Business
Development Manager
© 2016 ELSE Corp S.r.l.
Luxury Products Customisation: Now and the Future
5
“For the next 5 years, I do not see many things happening. In 30/50 years you will be measured by a body scanner,
the measurements will be sent to a production facility completely run by computers, the suit will be assembled
without any human touch and then it will be sent back for trial. The client will try it on and the suit will be loosen or
tighten where the client feels it. The suit will be made using nanotechnology that when connected with the client
brain will alter itself without any human intervention. Probably the person that will assist you in store will be just a
facilitator totally unaware of fashion trends because, for them, you will look at styles and ideas just from famous
bloggers on the social media platforms.”
Giovanni Luigi Bordone - SCABAL Brand Ambassador
E.L.S.E. is working to reach this scenario many
years before this prediction:
© 2016 ELSE Corp S.r.l.
Made to Measure in 5 to 50 Years
6
RETAIL
Luxury brands preferred to steer
away from technology, fearing it
synonymous with mass media, and
t h e r e f o r e m a s s - m a r k e t
communication and perception.
Luxury brands are acknowledging
the role that social media and
a d v a n c e d , s e n s o r y - l e d
technologies play in consumers’
everyday lives, and adapting them
to their own purposes with a smart,
upscale twist.
PAST PRESENT
© 2016 ELSE Corp S.r.l.
Retail is Changing
7
Brands were sticking to traditional
ways of manufacturing, based on
old technologies and seasonal
collections.
B r a n d s a r e a p p l y i n g n e w
technologies into a traditional
scheme, trying to insert Limited
Edition Collections.
PAST PRESENT
MANUFACTURING
© 2016 ELSE Corp S.r.l.
Manufacturing is Changing
8
C u s t o m e r s w e r e a b l e t o
experience shopping in a physical
store, and they could only buy
existing products from the stock.
The shopping experience is
extended in both, off-line and on-
line channels. Brands recognize
the importance of using digital
technology in-store to make the
shopping experience more
appealing.
PAST PRESENT
SHOPPING
EXPERIENCE
© 2016 ELSE Corp S.r.l.
The Shopping Experience is Changing
9
Personalisation was largely the
preserve of luxury brands,
involving monogram products or
observing an item being finished
in-store.
Brands cater to consumers’
growing desire for individualism
and personal creative expression
with customization zones and
participatory concepts.
PAST PRESENT
PERSONALISATION
EXPERIENCE
© 2016 ELSE Corp S.r.l.
The Personalisation Experience is Changing
10
The customer’s measurements are
taken by a tailor, then a pattern is
selected and altered to match the
customer’s measures.
The customer’s measurements are
taken by a MTM retailer (on-line or
physically), then a pattern is
altered to match customer’s
measures and style specs.
PAST PRESENT
MTM & MTO
© 2016 ELSE Corp S.r.l.
MTM & MTO is Changing
11
Manufacturing: Technology will play an essential
role, becoming fundamental in the Industrial Made to
Measure processes to provide hyper - personalized
products.
Customers: Consumer - creators become an integral
part of the design process and are able to co - author
personalized products; stores and on - line platforms
function as studios and labs.
Shopping Experience: Brands will deliver tailored
products and services, taking the approach of
Technology as an experience enhancer.
Retail: Virtual retail will play an essential role in omni
& consumer relevancy channels, fading the barrier
between the digital and physical world.
© 2016 ELSE Corp S.r.l.
Luxury 3.0 + Virtual Retail Business Model
12
www.else-corp.com
GENERAL SCENARIO: CUSTOMER
© 2016 ELSE Corp S.r.l. 13
The new
definition of luxury
doesn’t eliminate
class and style, but
does require absolute
uniqueness & deeper
experiences.
© 2016 ELSE Corp S.r.l.
The New Luxury Consumer
14
© 2016 ELSE Corp S.r.l.
Types of Millennial Shoppers (RCE, 2016)
15
Social
Shopper
The Bargain
Hunter
Elite
Shopper
Impulse
Buyer
Frugal
Fannie
Around 50% fo consumers are influenced by friends and
family when making a purchasing decision.
7.4% of consumers are more likely to buy from retailer’s
site when they get a discount code.
47.6% feel more valued when the retailer rewards them
with loyalty points.
Almost 50% of consumers have made a purchase based
on “Suggested Items”.
37.2% are motivated to shop when they need something.
25% are willing
to pay a
premium price
(+20%)
(Deloitte, 2015)
45% spend
money on
personalization
(Forrester, 2015)
45% are
comfortable
waiting longer to
get a
personalized
product
(Deloitte, 2015)
216% more
likely to be
influenced by in -
store deeper
experiences
(Honigman, 2013)
© 2016 ELSE Corp S.r.l.
Trends: Millennials / HENRYs
16
Tailored
Products &
Services
Deeper
Experiences
Products
Delivered on
the Right Time
TAILORING TECHNOLOGY SPEED
© 2016 ELSE Corp S.r.l.
What do They Want?
17
www.else-corp.com
LUXURY 3.0: TAILORING + TECHNOLOGY + SPEED
© 2016 ELSE Corp S.r.l. 18
Target
Positioning
Purpose
Value
Shopping
Form
Shopping
Influence
Added
Value
Approach
HNWI
Exclusive
Acquiring
Brand
Spontaneous
In - Store
Tailored Product
Product Based
Omni - Channel + Commerce Relevancy
Tech as an experience enhancer
Tailored Product + Tech + Time Efficiency
Considered
Back - Story
Experience
Unique
HENRY
Luxury 3.0Luxury
© 2016 ELSE Corp S.r.l.
Luxury & Luxury 3.0
19
VirtualDigital
Digital Platform
Browsing
Unidirectional
Multi - Channel
Best Price
Seasonal Collections
Product from Stock in 1 Size
Virtual Platform
Interacting
Multidirectional
Omni - Channel + Commerce Relevancy
Best Products
Capsule Collections
MTO + MTM Product
E.L.S.E provides brands with a new solution, taking them from a traditional e-
Commerce model to a cross-platform, virtual commerce solution that they
can integrate into any environment to sell personalised capsule collections
© 2016 ELSE Corp S.r.l.
From Digital to Virtual
20
Famous Luxury Brands
Fashion Companies &
Emerging Designers
Fast, Affordable & Trendy
Allows experimentation
Best product at a competitive price
Production comes after payment
M
T
O
Prevent retail costs
Increases brand awareness
Boosts brand’s dynamism
Attracts new customers without
compromising brand’s exclusivity
Increments online competitiveness
with price - oriented customers
M
T
O
M
T
M
+
© 2016 ELSE Corp S.r.l.
MTO & MTM + Luxury 3.0: The Advantages
21
www.else-corp.com
BEYOND THE 1ST PURCHASE
© 2016 ELSE Corp S.r.l. 22
Loyalty Impact
© 2016 ELSE Corp S.r.l.
Beyond the First Purchase (1)
23
Loyalty programs are used out of an
average of 11.3.7.3
Modify spending habits to maximize
points.63%
Are more likely to recommend brands
with good loyalty programs.66%
RCE, 2016.
© 2016 ELSE Corp S.r.l.
Beyond the First Purchase (2)
24
Demographic Differences
Times, millennials are more likely to pay a
premium price if they earn loyalty points.1.5
Of millennials don’t mind product
recommendations based on purchase
history, compared with 30% of boomers.
44%
Millennials value special services
compared with boomers.
+
RCE, 2016.
© 2016 ELSE Corp S.r.l.
Beyond the First Purchase (3)
25
RCE, 2016.
Rewards &
Redemption
Times as likely to defect
loyalty programs, the
“non - redeemers”.
2
Credit card programs can
benefit from retail and
online points redemption.+
Of members have never
redeemed anything.+25%
Program
Satisfaction
Program satisfaction is
steady from last year.
2015/16
Thinks their program fits
their brand expectations.23%
© 2016 ELSE Corp S.r.l.
Beyond the First Purchase (4)
26
Mobile as a Big Advantage
Want to interact with the brand via
mobile device.
Don’t know if a brand mobile app
exists.+50%
Consumers are interested in mobile to
check point balances, read emails, find
a store and redeem rewards.
RCE, 2016.
44%
+
www.else-corp.com
COUNTERFEIT PRODUCTS: A HARM TO ECONOMY
© 2016 ELSE Corp S.r.l. 27
3.3% 1.9% 1.6% 1.2%
0.6% 0.5% 0.4% 0.4%
China
Turkey Singapore Thailand India
Morocco U. A. E. Pakistan Egypt
© 2016 ELSE Corp S.r.l.
Top Origin Economies of Fakes
28
Hong Kong
63.2%
21.3% 5.6%
Rest of the
World
Data: Trade in Counterfeit and Pirated Goods
€17
Billion
363 000 518 281
€8.1
Billion
Lost Sales Revenue
Lost in the
Sector
Revenue
Lost in
Related
Sectors
Direct Jobs
Lost
Direct &
Indirect
Jobs Lost
Government
Revenue
Lost
(contributions & taxes)
€26.3
Billion
9.7%
Data: Office for Harmonization in the Internal Market
© 2016 ELSE Corp S.r.l.
Counterfeiting Effects in Europe
29
© 2016 ELSE Corp S.r.l.
The Damage in Economy
30
ITALY IS THE
MOST AFFECTED
EUROPEAN
COUNTRY
Data: Office for Harmonization in the Internal Market
70% OF TEXTILES
USED IN ITALIAN
FASHION IS MADE
INTERNALLY,
AFFECTING 81,000
JOBS
© 2016 ELSE Corp S.r.l.
Effects in Related Industries
31
Data: Office for Harmonization in the Internal Market
5 Billion
4.5 Billion
4 Billion
3.9 Billion
3.8 Billion
Italy
Spain
United Kingdom
Germany
France
Data: Office for Harmonization in the Internal Market
© 2016 ELSE Corp S.r.l.
Lost Sales in Numbers
32
96% OF
CHINESE SHOPPERS
ARE CONCERNED
THAT PRODUCTS THEY
BUY ONLINE MAY BE
COUNTERFEIT.
© 2016 ELSE Corp S.r.l.
Effects in Online Sales
33
Data: J. Walter Thompson Intelligence
© 2016 ELSE Corp S.r.l. 34
An Opportunity for a New Retail Model
INDUSTRIAL “MADE TO MEASURE” MADE SIMPLE
© 2016 ELSE Corp S.r.l.
E.L.S.E. as a Concept
35
Initial Payment
Virtual Fitting & Cross Sale
Final Payment Product Finalisation
for initial
manufacturing
%
for tailored
manufacturing
%
€
Measures & Information of 3D Avatar
Model: #98457
Customer: A. G.
Size: 38 Regular
Adjust: Points X, Y, T, Z for MTM
Virtual Tailoring & Manufacturing
MTM & Customisation1
3
5
2
4
6
© 2016 ELSE Corp S.r.l.
Virtual Retail Service Delivery Model
36
Fashion Brand’s
Capsule Collection
Brand’s
Customers
SaaS platform as a
bespoke services
automation for fashion &
luxury brands
© 2016 ELSE Corp S.r.l.
E.L.S.E. Direct to Consumer Service Delivery Model
37
3D Design Strategic Marketing
Technical Support Smart Prototyping
© 2016 ELSE Corp S.r.l.
Value Added Service
38
B2BB2C
Traditional Response
- Store closing
- Geo presence revision
- New processes
Sales Tools & Technology
- Window displays
- On - line store
- 3D Body Scanners
- 3D Printers
- Interactive tailoring mirror
- Holograms
- Virtual Consoles
- In - Store E - Commerce
- CRM Systems
Current Scenario
- Slowdown in openings
- Physical stores are not rentable
- Decline in sales
- Less sales in mature markets
- Slow stock rotation (in some products)
Current Trends
- 45% of shoppers spend money on
personalization
- 25% of consumers are willing to pay a
premium price (+20%)
- 45% are comfortable waiting longer to get a
personalized product
- Millennials are 216% more likely to be
influenced by in-store touch screen
displays
Tech Integration
© 2016 ELSE Corp S.r.l.
Luxury 3.0 & E.L.S.E.
39
Each Virtual Capsule collection is comprised of a selection of items that follow
the theme or mood of the collection. Each product within the v.c.c. is made up
of elements, and each element has it’s own set of possible configurations.
© 2016 ELSE Corp S.r.l.
Basic Product Customization Logic
40
© 2016 ELSE Corp S.r.l.
Brand Input for V-Retail: Shoe (example)
41
Everyday Luxury
Affordable Luxury
Accessible Core
Premium Core
Superpremium
Ultra
High
End
Democratic Fashion Brands
Bespoke
Industrial
INDUSTRIAL
MADE TO
ORDER
Margin
Volume
SmartBrands
© 2016 ELSE Corp S.r.l.
Ideal Fashion Brand Types for Virtual Retail
42
© 2016 ELSE Corp S.r.l. 43
www.else-corp.com
KNOW MORE ABOUT
www.else-corp.com
Thank You!
Andrey Golub, Co - Founder & C.E.O.
a.golub@else-corp.it
© 2016 ELSE Corp S.r.l. 44
www.else-corp.com
© 2016 ELSE Corp S.r.l. 45
Disclaimer
Brands’ logos inserted in this presentation belong to their respective owners and ELSE Corp
Srl does not claim rights over them.
Data and information provided in this presentation belong to public sources of digital
access. ELSE Corp Srl has no responsibility for the accuracy of these sources.
The pictures that are on this document are copyrighted to their personal owners. The credit
is to the owner and in no way we are claiming the right to these photos.
The pictures are taken from URL’s on the web and believed to be public.

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Introduction to VIRTUAL RETAIL and E.L.S.E., by ELSE Corp

  • 1. Exclusive Luxury Shopping Experience Introduction to “Virtual Retail” © 2016 ELSE Corp S.r.l. 1
  • 2. © 2016 ELSE Corp S.r.l. Index 2 • Market Scenario • Customer Scenario • Luxury 3.0: Tailoring + Technology + Speed • An Opportunity for a New Retail Model
  • 3. Virtual retail will fade the barrier between the digital and physical world, using Technology as an experience enhancer for products and services. © 2016 ELSE Corp S.r.l. The Impact of Virtual Retail 3
  • 5. Now 25% are willing to pay a premium price (+20%) (Deloitte, 2015) 45% spend money on personalization (Forrester, 2015) 45% are comfortable waiting longer to get a personalized product (Deloitte, 2015) “By 2020, 15% of the clothing Americans buy will be customised. That is $35 Bn worth in sales in apparel alone.” Merjin Helle VP SAP America The Future “Hyper-personalisation has started to grow in 2015 and will become a more important part of the customer experience over the next couple of years” Craig Cannon IBM Business Development Manager © 2016 ELSE Corp S.r.l. Luxury Products Customisation: Now and the Future 5
  • 6. “For the next 5 years, I do not see many things happening. In 30/50 years you will be measured by a body scanner, the measurements will be sent to a production facility completely run by computers, the suit will be assembled without any human touch and then it will be sent back for trial. The client will try it on and the suit will be loosen or tighten where the client feels it. The suit will be made using nanotechnology that when connected with the client brain will alter itself without any human intervention. Probably the person that will assist you in store will be just a facilitator totally unaware of fashion trends because, for them, you will look at styles and ideas just from famous bloggers on the social media platforms.” Giovanni Luigi Bordone - SCABAL Brand Ambassador E.L.S.E. is working to reach this scenario many years before this prediction: © 2016 ELSE Corp S.r.l. Made to Measure in 5 to 50 Years 6
  • 7. RETAIL Luxury brands preferred to steer away from technology, fearing it synonymous with mass media, and t h e r e f o r e m a s s - m a r k e t communication and perception. Luxury brands are acknowledging the role that social media and a d v a n c e d , s e n s o r y - l e d technologies play in consumers’ everyday lives, and adapting them to their own purposes with a smart, upscale twist. PAST PRESENT © 2016 ELSE Corp S.r.l. Retail is Changing 7
  • 8. Brands were sticking to traditional ways of manufacturing, based on old technologies and seasonal collections. B r a n d s a r e a p p l y i n g n e w technologies into a traditional scheme, trying to insert Limited Edition Collections. PAST PRESENT MANUFACTURING © 2016 ELSE Corp S.r.l. Manufacturing is Changing 8
  • 9. C u s t o m e r s w e r e a b l e t o experience shopping in a physical store, and they could only buy existing products from the stock. The shopping experience is extended in both, off-line and on- line channels. Brands recognize the importance of using digital technology in-store to make the shopping experience more appealing. PAST PRESENT SHOPPING EXPERIENCE © 2016 ELSE Corp S.r.l. The Shopping Experience is Changing 9
  • 10. Personalisation was largely the preserve of luxury brands, involving monogram products or observing an item being finished in-store. Brands cater to consumers’ growing desire for individualism and personal creative expression with customization zones and participatory concepts. PAST PRESENT PERSONALISATION EXPERIENCE © 2016 ELSE Corp S.r.l. The Personalisation Experience is Changing 10
  • 11. The customer’s measurements are taken by a tailor, then a pattern is selected and altered to match the customer’s measures. The customer’s measurements are taken by a MTM retailer (on-line or physically), then a pattern is altered to match customer’s measures and style specs. PAST PRESENT MTM & MTO © 2016 ELSE Corp S.r.l. MTM & MTO is Changing 11
  • 12. Manufacturing: Technology will play an essential role, becoming fundamental in the Industrial Made to Measure processes to provide hyper - personalized products. Customers: Consumer - creators become an integral part of the design process and are able to co - author personalized products; stores and on - line platforms function as studios and labs. Shopping Experience: Brands will deliver tailored products and services, taking the approach of Technology as an experience enhancer. Retail: Virtual retail will play an essential role in omni & consumer relevancy channels, fading the barrier between the digital and physical world. © 2016 ELSE Corp S.r.l. Luxury 3.0 + Virtual Retail Business Model 12
  • 14. The new definition of luxury doesn’t eliminate class and style, but does require absolute uniqueness & deeper experiences. © 2016 ELSE Corp S.r.l. The New Luxury Consumer 14
  • 15. © 2016 ELSE Corp S.r.l. Types of Millennial Shoppers (RCE, 2016) 15 Social Shopper The Bargain Hunter Elite Shopper Impulse Buyer Frugal Fannie Around 50% fo consumers are influenced by friends and family when making a purchasing decision. 7.4% of consumers are more likely to buy from retailer’s site when they get a discount code. 47.6% feel more valued when the retailer rewards them with loyalty points. Almost 50% of consumers have made a purchase based on “Suggested Items”. 37.2% are motivated to shop when they need something.
  • 16. 25% are willing to pay a premium price (+20%) (Deloitte, 2015) 45% spend money on personalization (Forrester, 2015) 45% are comfortable waiting longer to get a personalized product (Deloitte, 2015) 216% more likely to be influenced by in - store deeper experiences (Honigman, 2013) © 2016 ELSE Corp S.r.l. Trends: Millennials / HENRYs 16
  • 17. Tailored Products & Services Deeper Experiences Products Delivered on the Right Time TAILORING TECHNOLOGY SPEED © 2016 ELSE Corp S.r.l. What do They Want? 17
  • 18. www.else-corp.com LUXURY 3.0: TAILORING + TECHNOLOGY + SPEED © 2016 ELSE Corp S.r.l. 18
  • 19. Target Positioning Purpose Value Shopping Form Shopping Influence Added Value Approach HNWI Exclusive Acquiring Brand Spontaneous In - Store Tailored Product Product Based Omni - Channel + Commerce Relevancy Tech as an experience enhancer Tailored Product + Tech + Time Efficiency Considered Back - Story Experience Unique HENRY Luxury 3.0Luxury © 2016 ELSE Corp S.r.l. Luxury & Luxury 3.0 19
  • 20. VirtualDigital Digital Platform Browsing Unidirectional Multi - Channel Best Price Seasonal Collections Product from Stock in 1 Size Virtual Platform Interacting Multidirectional Omni - Channel + Commerce Relevancy Best Products Capsule Collections MTO + MTM Product E.L.S.E provides brands with a new solution, taking them from a traditional e- Commerce model to a cross-platform, virtual commerce solution that they can integrate into any environment to sell personalised capsule collections © 2016 ELSE Corp S.r.l. From Digital to Virtual 20
  • 21. Famous Luxury Brands Fashion Companies & Emerging Designers Fast, Affordable & Trendy Allows experimentation Best product at a competitive price Production comes after payment M T O Prevent retail costs Increases brand awareness Boosts brand’s dynamism Attracts new customers without compromising brand’s exclusivity Increments online competitiveness with price - oriented customers M T O M T M + © 2016 ELSE Corp S.r.l. MTO & MTM + Luxury 3.0: The Advantages 21
  • 22. www.else-corp.com BEYOND THE 1ST PURCHASE © 2016 ELSE Corp S.r.l. 22
  • 23. Loyalty Impact © 2016 ELSE Corp S.r.l. Beyond the First Purchase (1) 23 Loyalty programs are used out of an average of 11.3.7.3 Modify spending habits to maximize points.63% Are more likely to recommend brands with good loyalty programs.66% RCE, 2016.
  • 24. © 2016 ELSE Corp S.r.l. Beyond the First Purchase (2) 24 Demographic Differences Times, millennials are more likely to pay a premium price if they earn loyalty points.1.5 Of millennials don’t mind product recommendations based on purchase history, compared with 30% of boomers. 44% Millennials value special services compared with boomers. + RCE, 2016.
  • 25. © 2016 ELSE Corp S.r.l. Beyond the First Purchase (3) 25 RCE, 2016. Rewards & Redemption Times as likely to defect loyalty programs, the “non - redeemers”. 2 Credit card programs can benefit from retail and online points redemption.+ Of members have never redeemed anything.+25% Program Satisfaction Program satisfaction is steady from last year. 2015/16 Thinks their program fits their brand expectations.23%
  • 26. © 2016 ELSE Corp S.r.l. Beyond the First Purchase (4) 26 Mobile as a Big Advantage Want to interact with the brand via mobile device. Don’t know if a brand mobile app exists.+50% Consumers are interested in mobile to check point balances, read emails, find a store and redeem rewards. RCE, 2016. 44% +
  • 27. www.else-corp.com COUNTERFEIT PRODUCTS: A HARM TO ECONOMY © 2016 ELSE Corp S.r.l. 27
  • 28. 3.3% 1.9% 1.6% 1.2% 0.6% 0.5% 0.4% 0.4% China Turkey Singapore Thailand India Morocco U. A. E. Pakistan Egypt © 2016 ELSE Corp S.r.l. Top Origin Economies of Fakes 28 Hong Kong 63.2% 21.3% 5.6% Rest of the World Data: Trade in Counterfeit and Pirated Goods
  • 29. €17 Billion 363 000 518 281 €8.1 Billion Lost Sales Revenue Lost in the Sector Revenue Lost in Related Sectors Direct Jobs Lost Direct & Indirect Jobs Lost Government Revenue Lost (contributions & taxes) €26.3 Billion 9.7% Data: Office for Harmonization in the Internal Market © 2016 ELSE Corp S.r.l. Counterfeiting Effects in Europe 29
  • 30. © 2016 ELSE Corp S.r.l. The Damage in Economy 30 ITALY IS THE MOST AFFECTED EUROPEAN COUNTRY Data: Office for Harmonization in the Internal Market
  • 31. 70% OF TEXTILES USED IN ITALIAN FASHION IS MADE INTERNALLY, AFFECTING 81,000 JOBS © 2016 ELSE Corp S.r.l. Effects in Related Industries 31 Data: Office for Harmonization in the Internal Market
  • 32. 5 Billion 4.5 Billion 4 Billion 3.9 Billion 3.8 Billion Italy Spain United Kingdom Germany France Data: Office for Harmonization in the Internal Market © 2016 ELSE Corp S.r.l. Lost Sales in Numbers 32
  • 33. 96% OF CHINESE SHOPPERS ARE CONCERNED THAT PRODUCTS THEY BUY ONLINE MAY BE COUNTERFEIT. © 2016 ELSE Corp S.r.l. Effects in Online Sales 33 Data: J. Walter Thompson Intelligence
  • 34. © 2016 ELSE Corp S.r.l. 34 An Opportunity for a New Retail Model
  • 35. INDUSTRIAL “MADE TO MEASURE” MADE SIMPLE © 2016 ELSE Corp S.r.l. E.L.S.E. as a Concept 35
  • 36. Initial Payment Virtual Fitting & Cross Sale Final Payment Product Finalisation for initial manufacturing % for tailored manufacturing % € Measures & Information of 3D Avatar Model: #98457 Customer: A. G. Size: 38 Regular Adjust: Points X, Y, T, Z for MTM Virtual Tailoring & Manufacturing MTM & Customisation1 3 5 2 4 6 © 2016 ELSE Corp S.r.l. Virtual Retail Service Delivery Model 36
  • 37. Fashion Brand’s Capsule Collection Brand’s Customers SaaS platform as a bespoke services automation for fashion & luxury brands © 2016 ELSE Corp S.r.l. E.L.S.E. Direct to Consumer Service Delivery Model 37
  • 38. 3D Design Strategic Marketing Technical Support Smart Prototyping © 2016 ELSE Corp S.r.l. Value Added Service 38
  • 39. B2BB2C Traditional Response - Store closing - Geo presence revision - New processes Sales Tools & Technology - Window displays - On - line store - 3D Body Scanners - 3D Printers - Interactive tailoring mirror - Holograms - Virtual Consoles - In - Store E - Commerce - CRM Systems Current Scenario - Slowdown in openings - Physical stores are not rentable - Decline in sales - Less sales in mature markets - Slow stock rotation (in some products) Current Trends - 45% of shoppers spend money on personalization - 25% of consumers are willing to pay a premium price (+20%) - 45% are comfortable waiting longer to get a personalized product - Millennials are 216% more likely to be influenced by in-store touch screen displays Tech Integration © 2016 ELSE Corp S.r.l. Luxury 3.0 & E.L.S.E. 39
  • 40. Each Virtual Capsule collection is comprised of a selection of items that follow the theme or mood of the collection. Each product within the v.c.c. is made up of elements, and each element has it’s own set of possible configurations. © 2016 ELSE Corp S.r.l. Basic Product Customization Logic 40
  • 41. © 2016 ELSE Corp S.r.l. Brand Input for V-Retail: Shoe (example) 41
  • 42. Everyday Luxury Affordable Luxury Accessible Core Premium Core Superpremium Ultra High End Democratic Fashion Brands Bespoke Industrial INDUSTRIAL MADE TO ORDER Margin Volume SmartBrands © 2016 ELSE Corp S.r.l. Ideal Fashion Brand Types for Virtual Retail 42
  • 43. © 2016 ELSE Corp S.r.l. 43 www.else-corp.com KNOW MORE ABOUT
  • 44. www.else-corp.com Thank You! Andrey Golub, Co - Founder & C.E.O. a.golub@else-corp.it © 2016 ELSE Corp S.r.l. 44
  • 45. www.else-corp.com © 2016 ELSE Corp S.r.l. 45 Disclaimer Brands’ logos inserted in this presentation belong to their respective owners and ELSE Corp Srl does not claim rights over them. Data and information provided in this presentation belong to public sources of digital access. ELSE Corp Srl has no responsibility for the accuracy of these sources. The pictures that are on this document are copyrighted to their personal owners. The credit is to the owner and in no way we are claiming the right to these photos. The pictures are taken from URL’s on the web and believed to be public.